Emclaire Financial Corp., the parent holding company of the Farmers National Bank of Emlenton, reached another milestone in 2006 as total assets grew to over $300 million.

During the year the bank increased its loan portfolios, grew customer deposits and maintained solid capital levels while opening a new branch office, reorganizing management, streamlining operations, enhancing technology and establishing new products.

The bank continued its practice of lending in-market and virtually all loan portfolios grew during the year. Total loans increased $20.8 million or 10.8 percent to $213.3 million on Dec. 31 from $192.5 million on Dec. 31, 2005.

The bank continued to focus on commercial loan production as business loans grew by $15.0 million or 18.6 percent. Consumer loans also increased.

Customer deposits grew by $14.0 million or 6.1 percent to $244.5 million on Dec. 31 from $230.5 million on Dec. 31, 2005.

The bank grew loans and deposits for the second consecutive year and over the past five years total assets, loans and deposits have increased 38.7 percent, 32.9 percent and 29.0 percent, respectively.

Not only have the bank's core products grown, but the corporation continues to increase stockholders' equity and capital base as total stockholders' equity increased to $23.7 million or about 8.0 percent of total assets at Dec. 31.

David L. Cox, chairman of the board, president and chief executive officer, noted, "The board of directors and management continue to be pleased with the bank's steady balance sheet growth, sound lending culture and loan production base. We continue to increase our quality loan portfolio and deposit base through prudent community banking practices."

Continued expansion was realized in 2006 by the opening of a new full-service branch office in the Cranberry, Venango County, in November. In December the bank bought a bank branch office in Grove City. This office is scheduled to open in April 2008.

The year saw changes in management as William C. Marsh, an Oil City native, returned as executive vice president in June. He was previously the chief financial officer with the corporation and the bank and returned to manage finance, accounting and compliance and to assist in directing corporate-wide strategic initiatives. Mr. Marsh was also appointed to the board of directors in June.

In January 2007, Kathleen L. Buzzard joined the bank as senior vice president, retail banking. She is responsible for managing the branch network, marketing and product development efforts, and the financial services division.

In June 2006, the board and executive management began a review of all the bank's operations. This resulted in changes in personnel and a streamlining of operations to better use technology investments and to improve operating controls.

This year the corporation will continue customer service improvements and will expand product and service offerings particularly to business customers. The introduction of corporate banking services including cash management, account analysis and business internet products and services are expected this year.

The corporation's annual meeting of stockholders will be at 9 a.m. April 25 at the main office of Farmers National Bank of Emlenton.